London's status as an international property investment centre could be shaken if Britain were to leave the European Union, a new report from KPMG has found.
The European Referendum, proposed by the Conservative Party for 2017 should it stay in power, is a significant threat to the UK's commercial and residential property markets, weakening its reputation as a safe haven for both institutional and private funds.
Two-thirds of property bosses surveyed by KPMG said that Britain leaving the EU would have a "negative impact on inbound cross-border investment," twice as many as those who were worried about the political uncertainty caused by the general election in May.
"There is a lack of distinction between the housing policies of the different leading parties [the Conservatives and Labour Party] but no one is sure what withdrawal from the European Union would mean," said Richard White, head of UK real estate at KPMG.
"How would funds react when doing business with London?" The "spill-over" effect may hit other cities across Europe, he added, but London, in particular, would see a pause in deal activity as investors assess the impact.
"There is an understandable worry and as such it currently outranks the general election on investors' lists of concern," said Mr White.